Have you suffered financial losses as a result of your investment in LifeCare Holdings, Inc? If so, The White Law Group may be able to recover some of your losses through a claim against the broker dealer that sold you the investment.
According to the offering prospectus, LifeCare Holdings is based in Plano, Texas and began operations in 1993. The company develops, acquires and operates long-term acute care hospitals. In 2006 the company registered an offering of $150,000,000 in 9 1/4% senior subordinated notes due in 2013. Unfortunately, many investors appear to still be waiting for their returns.
In 2012, according to Bloomberg, LifeCare Holdings filed for chapter 11 bankruptcy. The news article said, “The bankruptcy was caused in part by ‘a significant and unforeseen setback’ from Hurricane Katrina in 2005, which destroyed three facilities in New Orleans, Chairman Phillip B. Douglas said in court papers.”
Broker dealers that sold LifeCare Holding notes had a responsibility to perform the necessary due diligence to determine whether the investments had a reasonable likelihood of success. In addition, they have a fiduciary duty to make investment recommendations that are inline with each individual investors age, net worth, investment objectives, risk tolerance and liquidity needs.
Brokers that overlook suitability requirements or fail to perform due diligence can be liable for investment losses through FINRA arbitration.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of a LifeCare Holdings secured note, please contact The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.